# What is Home Loan Concession for Ladies in India (2023)?

Many banks in India offer small concession in interest rates for ladies when it comes to home loans. If you want to know How much concession do women borrowers get on home loan interest rates, then this article will answer your question.

Home loan concession for ladies in Interest Rates (2023)

Many banks and housing finance companies in India offer concessional rates to women borrowers. The concession is generally 5 basis points or 0.05% but at times can be higher and up to 0.1% during special offer periods.

I agree that this concession seems small. And it is. But we need to remember that for many, home loan is a long-term thing and even a small reduction in home loan rates does add up.

Let’s see with an example. Suppose you (a male) wish to take a home loan of Rs 50 lakh for 25 year period. The home loan rate you are getting from bank is 8.75%. But if your wife is the main applicant, then the bank is willing to offer a concession of 0.05% on the rates, i.e. it will be 8.70% for your wife.

Here is how it will change the numbers.

At 8.75%, a 25-year home loan will incur an EMI of Rs 41,107 and total interest of Rs 73.3 lakh. But if a female takes the loan and gets the concession of 0.05% on the rates, then this 8.70% loan will have an EMI of Rs 40,937 and total interest of Rs 72.8 lakh. And if you somehow get a good deal and a discount of say 0.1% on the home loan for women borrower, then your interest burden reduces further to Rs 72.3 lakh in the above example.

So at least mathematically speaking, you do save some money if you can have a female in the family take a home loan instead of a male.

And what about extra home loan tax benefit for woman home loan borrower?

There are no separate tax benefits for home loan repayment by women in India. The maximum tax deduction for principal repayment is Rs 1.5 lakh and for interest payments is Rs 2 lakh. And this is available to everyone irrespective of whether a male or a female. If a husband and wife jointly own the property and each earns a different type of income, both may be eligible for tax breaks under joint home loan tax benefits.

But yes, there can be some additional benefits for women when it comes to stamp duty. Many states in India offer a 1-2% reduction in stamp duty to encourage women to buy property. This can result in significant savings. For example, for a house worth Rs 1 crore, women can save up to Rs 1-2 lakh by means of reduced stamp duty.

So that was about the benefits of being a woman home loan borrower. As we saw, many banks and NBFCs offer Home Loan Concession for Ladies. So yes, the home loan interest rate is less for women home loan applicants in India than men.

Home loan interest rate discount for female can range from 0.05% to up to 0.10%. This is the concession in home loan interest rates for women in India (2023). Hope you found this note on home loan concession for women, home loan concession for females and home loan discount for ladies in India useful.